The 2020 balance sheet of Osaka's Tennis Shop, Incorporated, showed long-term debt of $5.2 million, and the 2021 balance sheet showed long-term debt of $5.45 million. The 2021 income statement showed an interest expense of $170,000. The 2020 balance sheet showed $520,000 in the common stock account and $5.5 million in the additional paid-in surplus account. The 2021 balance sheet showed $560,000 and $5.7 million in the same two accounts, respectively. The company paid out $415,000 in cash dividends during 2021. Suppose you also know that the firm's net capital spending for 2021 was $1,380,000, and that the firm reduced its net working capital investment by $71,000. What was the firm's 2021 operating cash flow, or OCF? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, e.g., 1,234,567.)

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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The 2020 balance sheet of Osaka's Tennis Shop, Incorporated, showed long-term debt
of $5.2 million, and the 2021 balance sheet showed long-term debt of $5.45 million. The
2021 income statement showed an interest expense of $170,000. The 2020 balance
sheet showed $520,000 in the common stock account and $5.5 million in the additional
paid-in surplus account. The 2021 balance sheet showed $560,000 and $5.7 million in
the same two accounts, respectively. The company paid out $415,000 in cash dividends
during 2021. Suppose you also know that the firm's net capital spending for 2021 was
$1,380,000, and that the firm reduced its net working capital investment by $71,000.
What was the firm's 2021 operating cash flow, or OCF? (Do not round intermediate
calculations and enter your answer in dollars, not millions of dollars, e.g., 1,234,567.)
Answer is complete but not entirely correct.
Operating cash flow
311,900 X
$
Transcribed Image Text:The 2020 balance sheet of Osaka's Tennis Shop, Incorporated, showed long-term debt of $5.2 million, and the 2021 balance sheet showed long-term debt of $5.45 million. The 2021 income statement showed an interest expense of $170,000. The 2020 balance sheet showed $520,000 in the common stock account and $5.5 million in the additional paid-in surplus account. The 2021 balance sheet showed $560,000 and $5.7 million in the same two accounts, respectively. The company paid out $415,000 in cash dividends during 2021. Suppose you also know that the firm's net capital spending for 2021 was $1,380,000, and that the firm reduced its net working capital investment by $71,000. What was the firm's 2021 operating cash flow, or OCF? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, e.g., 1,234,567.) Answer is complete but not entirely correct. Operating cash flow 311,900 X $
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